Spring cultivation is due

Odonchimeg 2016-05-12 08:05

Economy

Spring cultivation is due.

Spring cultivation is due. The government nullified the special import tax for 6500 tons of diesel fuel required for the spring cultivation. However, this decision is not nationwide. It only applies just to two border crossings to help farmers. This action is effective until the middle of June. The cost of diesel fuel makes up to 22% of the cost of cultivating one hectare. The total cost of Mongolian wheat cultivation is higher than that of neighboring Russia and Kazakhstan which share similar climatic conditions. The reason for the high costs is that Mongolia imports everything from agricultural equipment to pesticides, fertilizer and fuel oil. In value terms, the tax window on diesel will reduce the cultivation costs, thereby really helping companies and individual farmers alike.